Renting Spanish Property

To Buy or Not To Buy….

My experience has shown that the vast majority of people moving here rent before they buy, or because their stay here is temporary as a result of a company transfer or business assignment. 

Rental prices are reasonable and largely cheaper than having a mortgage on the same property.  A 100m2, 3 bed, 2 bath, apartment with lift, parking and communal garden and pool would rent from 1100 Euros – 1600 Euros per month (+/-), again depending on the location.  Houses would rent from 1200 Euros p/m but are located outside the centre of town.  The urbanizations offer better value for money but this is offset by the necessity of a car or scooter. 

Holiday let/Temporary contract.

These contracts are for up to and including 11 months.  When you put your details on the contract, you will need to provide a permanent address other than the address of the property to be rented.  You will be asked to pay a deposit, the amount of which will vary depending on whether the property is furnished or not, 1 month for unfurnished and 2 months for furnished.  However, be aware that if the property has a fitted kitchen and nothing else, this is construed as furniture and 2 months deposit can be asked for legally.  You will find that certain owners also include their own terms and conditions depending on the condition/value of the property and their previous experiences with tenants. 

Do not be surprised if owners ask for 6 months deposit or an “aval bancario”.  An aval is where you will be required to deposit a sum of money in a special notarized account in the bank.  This money cannot be touched until the end of the contract UNLESS the contract terms have been broken by the tenant, when the money will be retained by the owner of the property.  If the contract terms and rented property are intact at the end of the tenancy, the money will be returned to the tenant. 

A contract for 11 months is just that and cannot be extended  - at least not to the same named party as tenant in the contract details!  The issuing of consecutive 11 month contracts to the same person is illegal, as this then forms a contract of 12 months or more and certain laws come into force as a result.

A contract for 1 – 5 years is a contract that covers primary residency.   The first 12 months of the contract is obligatory for the tenant to complete.  After that, the tenants have the legal right to renew the contract annually for up to 5 years in total.  The owner is legally obliged to accept the tenant’s extention of the contract.    The tenants may also give notice at any time after the first 12 months.  The amount of notice will be stipulated in the contract but is normally equated to the amount of deposit paid.  Special terms and conditions, deposits over and above the legal requirements and aval’s may be requested by the owner.   

A note of caution.  In both cases when you move in, the property should be in tip top condition with everything in working order, clean etc.  If just after you have moved in and find some things that don’t work or need attention, you MUST bring this to the owners attention as soon as possible.  This is because after the “honeymoon” period, the owner ceases to be responsible for the maintenance and care of the property.  This means if the flat comes with a washing machine and it breaks down; it’s your responsibility to get it fixed as it comes under “wear and tear”.  The thinking is, you are using it, you fix it.  I have known cases where the utilities were not connected to a rental property (this can be quite often the place with properties that are new or have been empty for a while) and the tenant was under contractual obligation to connect them!  Remember, if it’s in the contract and you’ve signed it – you’ve agreed to it.  Also, in this country, the person looking, ie. the tenant or the buyer, is the person who pays the commission charged by any agency or third party used in the search.